Question

The ballot sheet given below is presented for the partnership of Janet, Anton and millet Cash...

The ballot sheet given below is presented for the partnership of Janet, Anton and millet
Cash $60,000. Liabilities $80,000
Other Assets $150,000. Janet,capital $80,000
Anton,capital $30,000
Miller,capital $20,000
Total $210,000. Total. $210,000
The partners share profit and losses in the ratio of 5:3:2, respectively. The partners agreed to dissolve the partnership after selling the other assets for $50,000. On dissolution of the partnership, Janet should receive?
A. $10,000
B. $80,000
C. $0
D.$30,000


In the computation of a partners loss absorption power(LAP), which of the following statements is incorrect?
1. The competition of L APs for all partners allow Cache to be distributed before all partnership assets have been sold and all creditors have been paid
2. The computation available peas for all partners indicates the relative strength of each partners net capital position so that available Cache is distributed in respective loss sharing ratios

A.neither 1 or 2
B. Both 1 and 2
C. 2
D.1

Transferable interest of a partner includes all of the following except
A. The right to receive any liquidating distribution
B. The right to receive distributions
C. The partners share of the profits and losses of the partnership
D.It’s already to transact any of the partnerships business operations
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Answer #1

1.$30000,Option D is correct. Since the assets are sold for loss of $100000($150000-$50000), the losses are distributed among partners in their profit sharing ratio which nullifies the balances of Anton and Miller. With $110000, after paying $80000 liabilities,Janet get $30000.

2. Both the statements are correct. Hence option A is right. Neither 1 nor 2 are incorrect.

3.Transferable interest of a partner includes all of the following except its authority to transact any of the partnerships business operations.

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